Adani Ports & Special Economic Zone Ltd · NSE:ADANIPORTS
Adani Ports & Special Economic Zone — Investor Presentation (May 2021)
51 slides from Adani Ports & Special Economic Zone's investor presentation, May 2021
Slide 1: Adani Ports and SEZ Limited
Adani Ports and SEZ Limited May, 2021
Slide 2: Contents
Contents A Group Profile B Transformational Journey of APSEZ C Company Profile D Finance Policy E ESG F Annexure 2
Slide 3: Adani Group: A world class infrastructure & utility portfolio
Adani Group: A world class infrastructure & utility portfolio Adani Transport & Logistics Energy & Utility • Marked shift from B2B to Portfolio Portfolio B2C businesses– • ATGL – Gas distribution 63.7% 100% 75% 56% network to serve key SRCPL ATL AGEL geographies across India APSEZ Port & Logistics R
Slide 4: Adani Group: Decades long track record of industry best growth rates across sectors
Adani Group: Decades long track record of industry best growth rates across sectors Renewable Capacity (GW) Transmission Network (ckm) CGD7 (GAs8 covered) 12% 45% 118% 20% 3x 5x 3x 30% 1.5x 4% 7% 25% Industry Adani APSEZ Industry AGEL Adani Industry ATL Industry AGL 2014 972 MT 113 MT 2016 46 GW 0.3
Slide 5: Adani Group: Repeatable, robust & proven transformative model of investment
Adani Group: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Activity • Site acquisition • Engineering & design • Redesigning the • Analysis & market • Life cycle O&M capital
Slide 6: APSEZ: A transport utility with string of ports and integrated logistics network
APSEZ: A transport utility with string of ports and integrated logistics network String of Ports • Twelve Ports ~500 MMT of augmented capacity. • Setting benchmark in turnaround time across 66% 53% 67% industry. 92% FY15 8% Capacity 498 MMT FY21 33% • Single window service & excellence in operations
Slide 7: APSEZ: Transformational journey
APSEZ : Transformational journey Industry Business • 3x growth compared to market achieved without dilution • From a single port single commodity to an integrated in equity. logistics platform. • Driving efficiency through mechanization at large scale. • Strategic partnerships to unlock value. • Gro
Slide 8: APSEZ: Strategic partnerships with global majors driving value
APSEZ : Strategic partnerships with global majors driving value West Coast East Coat Terminals Mundra Kattu- Krishna- Terminals Hazira Dahej Dhamra palli patnam Vizag Tuna Vizhin- Dighi Myanmar jham Ennore Goa Dahej Dhamra Mundra CT 3 Mundra CT 4 Petronet LNG MCS - Second CMA-CGM - Fourth 50% Petron
Slide 9: APSEZ: Growth journey
APSEZ : Growth journey 247 223 208 169 180 • Diversification of cargo - cargo like LNG/LPG. • Serving developing industrial hinterland, provides ample growth opportunities. FY17 FY18 FY19 FY20 FY21 • Rapidly increasing footprint of integrated logistics, expected to have high growth to compliment por
Slide 10: APSEZ: Finance policy
APSEZ : Finance policy Consistent investment grade Shift towards long term FX risk management- Natural rating financing and profile Hedge • Since FY16, capped at sovereign. • 94% of debt is long term • Natural hedge flows from having a (compared to 74% in FY16). portion of balance sheet in USD • Ear
Slide 11: APSEZ: Financial discipline and prudent policy creates value
APSEZ: Financial discipline and prudent policy creates value Capital Management 300 3.3 4 3.4 285 3.5 250 2.9 2.9 • Investment Grade rated since FY16 2.5 3 200 221 2.5 • Improve leverage ratio (from 3.4x to 3.3x) 186 207 150 179 2 • Incremental earnings deployed for growth (EBIDTA 1.5 100 CAGR of 11
Slide 12: APSEZ: Focus on improving ROCE
APSEZ : Focus on improving ROCE Growth Journey 24% 23% • Recent acquisitions of Dhamra, Kattupalli and 18% 17% Krishnaptnam to generate higher ROCE due to 15% higher capacity utilization and constantly 14% 13% 12% improving operational efficiency. • Return ratio will continue to be best amongst peer
Slide 13: ESG
ESG
Slide 14: APSEZ: ESG philosophy
APSEZ : ESG philosophy Adherence to global environment guidelines like – CDP – Climate Change and Water Security, SBTi; Supporter of TCFD, Member of UNGC and IUCN, Signatory to IBBI All ports and ICDs are certified with Integrated Management System (ISO 9001, 14001 & 45001), 5 ports with Energy
Slide 15: APSEZ: Climate strategy
APSEZ : Climate strategy Optimizing Carbon Intensity Resource and Bio-diversity Waste Management • Carbon foot-printing and disclosure • Energy Management • Waste Reduction (5R* ) • Improving Carbon Efficiency • Optimizing Input Consumption • Circular Economy • Approaching Carbon Neutrality • Approa
Slide 16: Case: Carbon Footprint Reduction and Waste Management
Case : Carbon Footprint Reduction and Waste Management Renewable Energy Initiatives Integrated Waste Management Energy Mix Waste Management through 5R Principle (Reduce, Reuse, Reprocess, Recycle, Recover) Renewable 6% Renewable 25% FY 2 1 Conventional 94% FY 25 Conventional 75% Initiatives Achievem
Slide 17: APSEZ: Social Up-liftment Fisherman Community FY21
APSEZ : Social Up-liftment Fisherman Community FY21 Education Community Health Free Education – subsidized quality education Treatment through MHCUs – Treatment in Camps – 3000 students 3200 students 69,000 patients 22,000 patients Utthan Program – Bi-cycle Support – Rural clinics & wellness center
Slide 18: APSEZ: Outlook FY22
APSEZ : Outlook FY22 In the range of 310 MMT - 320 MMT (includes 10 MMT of Gangavaram port from Q4 FY22) a growth of 29% Consolidated revenue expected to be around Rs.16,000 cr. – Rs.16,800 cr., a growth 34% Port revenue to be around Rs.13,000 cr. – Rs.14,000 cr., a growth of 30% Logistics r
Slide 19: APSEZ: Immense value creation
APSEZ : Immense value creation FY16 FY21 FY25 Capital Employed* Rs.341 bn. 1.4x Rs.665 bn. 1.05x Rs.698 bn. EBITDA Rs.46 bn. 1.7x Rs.81bn. 2.4x Rs.195 bn. Net Debt / 3x EBIDTA 4.4x 1.5x 3.3x = ROCE 11% 160 bps 12% >740 bps 20%+ • Capital employed remains constand while EBIDTA improves 2.5x • EBITDA
Slide 20: APSEZ: Investment opportunity and Medium Term Growth Targets
APSEZ : Investment opportunity • Strong sponsorship of Adani Group. APSEZ : Medium Term • Transport utility which encapsulates entire gamut of supply chain with Growth Targets 25% market share and 90% of hinterland coverage in India. • Diversification of cargo mix, coasts and customer base de-risks
Slide 21: Annexures
Annexures
Slide 22: APSEZ: Largest private transport utility
APSEZ : Largest private transport utility APSEZ – Dhamra Port Ports Ports One Oneto totwelve ten in in Import - Export - Steel twenty twentyyears years Coking coal (HRC/CRC) 2x Port income String of Ports Ports of Prosperity Port gate to 2x Warehousing Warehousing SEZ customer gate Warehousing SEZ i
Slide 23: APSEZ: Largest network of ports
APSEZ : Largest network of ports West Coast East Coast Capacity 335 MMT Capacity 163* MMT FY06 FY21 1 Ports 12* Dahej Moga Kanech 14 498 Kilaraipur MMT Tuna Kotkapura Patli Dhamora 10 Capacity 14 Kannauj MMT MMT MMT Samastipur and Darbhanga Kishangarh Mundra Vidisha Katihar 264 MMT Harda Hoshangabad
Slide 24: APSEZ: SEZ Port development - recurring income stream
APSEZ : SEZ Port development - recurring income stream Mundra 8,435 72% 80% 2019 Dhamra 660 20% 2020 28% Total east coast land – 3519 Ha Krishnapatnam * 2,752 Kattupalli 107 • Total land bank of ~12k Ha. • Bringing customer inside Port gate. • Twin advantage of availability of large contiguous land
Slide 25: APSEZ: Maintaining Investment grade since half a decade
APSEZ : Maintaining Investment grade since half a decade Rating Agency Rating/ Outlook Remarks APSEZ International Rating Fitch BBB- / Negative S&P has reaffirmed its rating as BBB-/Stable. Due to revision of sovereign rating from stable to Moody’s Baa3 / Negative negative, Fitch & Moody’s have revi
Slide 26: APSEZ: Robust business & capital management, facilitates access to global markets
APSEZ : Robust business & capital management, facilitates access to global markets Issue Size (USD Company Issue Date Maturity Date Coupon Debt Structure Rating Mn.) 650 Jul,19 24-Jul-2024 3.38% Bullet BBB- (S&P, Fitch) / Baa3 (Moody's) 500 Jun,17 30-Jul-2027 4.00% Bullet BBB- (S&P, Fitch) / Baa3 (M
Slide 27: APSEZ: Leveraging technology on an enhanced service base
APSEZ : Leveraging technology on an enhanced service base Design Bidding Automated Automated & Integrated Workflow Project Management Workflow & Platforms for Internal and External 1 Data Based Stakeholders – providing visibility Operations Collaboration Decision making & data based decision making
Slide 28: APSEZ: People – Building future ready organization
APSEZ : People – Building future ready organization Leadership pipeline Continuous Capability Talent development Development Management • Leadership readiness for new • Focused training approach. • Create Opportunities for business and international expansion. Internal Talent. • People in sync with
Slide 29: Highlights for FY21
adani Ports and Logistics Highlights for FY21
Slide 30: APSEZ: Strategic highlights – FY21
APSEZ : Strategic highlights – FY21 (YoY) • Overhauled cost structure towards variable cost and focus on capacity utilization to demonstrate increase in port EBIDTA margin by 1%, from 69% to 70%. • Focused capital allocation resulted in curtailing discretionary Capex, rigorous financial management i
Slide 31: APSEZ: Operational highlights – FY21
APSEZ : Operational highlights – FY21 (YoY) Cargo volume of 247 MMT 11% • Cargo volume increased by 11% due to growth in all types of cargo. Container grew by 16%, dry bulk by 9%, Market share in cargo volume at 25% 4% and liquid cargo (including crude) by 2%. • Cargo mix continues to be balanced -
Slide 32: APSEZ: Cargo Volume FY21 - APSEZ vs. All India
APSEZ : Cargo Volume FY21 - APSEZ vs. All India (YoY in MMT) APSEZ All India Cargo Total Cargo 1024 11% 247 5% 971 223 • APSEZ outperforms all India ports and gains market share by 4%. Container 91 106 • Cargo volume is higher compared to 16% 256 0.2% 257 all India due to higher growth in co
Slide 33: APSEZ: Sequential cargo volume growth beats industry
APSEZ : Sequential cargo volume growth beats industry APSEZ Total Throughput All India Total Throughput 247 1024 979 971 223 934 208 894 180 169 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 APSEZ Cargo All India Cargo APSEZ CAGR 10% All India CAGR 3% >3x growth Achieved a CAGR of 10% due to div
Slide 34: APSEZ: Sequential container volume growth beats industry
APSEZ : Sequential container volume growth beats industry APSEZ Container Throughput All India Container Throughput 106 256 257 248 91 84 224 75 62 199 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 APSEZ Container All India Container APSEZ CAGR 17% All India CAGR 7% 2.4x growth 17% Growth on acc
Slide 35: APSEZ: Balanced cargo composition - FY21
APSEZ : Balanced cargo composition - FY21 51% 48% 45% 44% 45% 44% 43% 41% 41% 41% 37% 32% 17% 15% 15% 14% 14% 13% FY16 FY17 FY18 FY19 FY20 FY21 Dry Liquid (incl. Crude) Container Strategy to handle all types of cargo contributing to increase in market share 35
Slide 36: APSEZ: Balanced cargo growth across ports – FY21
APSEZ : Balanced cargo growth across ports – FY21 (in MMT) Incremental Cargo – Port wise 20 3 1 • Mundra and Dhamra port grew by 4% and 5 1 0.3 2 9% respectively on account of higher 247 247 container volume at Mundra (up 18%) and 246 dry bulk (up 7%) at Dhamra port. 223 • All major commodity segmen
Slide 37: APSEZ: Sticky cargo – Ensures resilience – FY21
APSEZ : Sticky cargo – Ensures resilience – FY21 (in MMT) Sticky Cargo Increases by 30 MMT, growth of 28% 300 66% 64% 247 64% 250 223 62% Constitutes ~56% of total cargo with 62% 208 200 a higher base in FY21, 180 60% 169 Sticky cargo grew at a CAGR of 6% 59% 150 58% 58% 131 138 81% of sticky
Slide 38: Financial Performance FY21
adani Ports and Logistics Financial Performance FY21
Slide 39: APSEZ: Financials highlights – FY21
APSEZ : Financials highlights – FY21 (YoY) Operating revenue at Rs.12,550 cr. 6% EBITDA* at Rs.8,063 cr. 7% • Port revenue and EBITDA grew on the back of 11% growth in cargo volume Port revenue at Rs.10,739 cr. 12% • Revamping of cost structure & operational efficiency Port EBITDA* at Rs.7,560 cr. 1
Slide 40: APSEZ: Consolidated financial performance – FY21
APSEZ : Consolidated financial performance – FY21 (YoY - Rs. in cr.) Operating Revenue Rs.677 cr. (6%) 1125 6 515 40 33 12550 11873 • Consolidated revenue increased due to 12% increase in Port revenue. • Port revenue growth of Rs.1,125 cr. was on account of 11% growth in cargo. FY20 Ports Logistics
Slide 41: APSEZ: Segment wise Operating Revenue & EBITDA - FY21
APSEZ : Segment wise Operating Revenue & EBITDA* - FY21 (YoY - Rs. in cr.) Ports Logistics 12,000 10,739 75% 1,200 30% 9,613 70% 964 958 10,000 70% 1,000 24% 25% 24% 69% 7,560 8,000 6,593 65% 800 20% • Port revenue growth led by 11% 6,000 600 15% growth in cargo volume. 60% 4,000 400 10% 234 226 • P
Slide 42: APSEZ: Debt profile – FY21
APSEZ : Debt profile – FY21 (YoY - Rs. in cr.) Gross Debt, Net Debt & Average Maturity Gross Debt Movement 40,000 6.2 34,401 6 5,447 35,000 776 267 34,401 6 29,463 28,472 30,000 5.8 29,463 25,000 22,137 5.6 20,000 5.4 15,000 5 5.2 10,000 5,000 5 0 4.8 Mar'2020 Mar'2021 FY20 Additional FX debt Forex
Slide 43: APSEZ: Strong operational performance improves FCF in FY21
APSEZ : Strong operational performance improves FCF* in FY21 (YoY - Rs. in cr.) Cash Flow Conversion Free Cash Flow Movement 7000 9000 80% 1668 36 72% 6000 8000 70% 8063 5000 760 606 7000 7565 52% 60% 6000 50%4000 5000 5800 40%3000 4000 5800 3942 30% 3000 2000 3942 2000 20% 1000 10%1000 0 0% 0 FY20
Slide 44: APSEZ: Key ratios of FY21
APSEZ : Key ratios of FY21 Rating Ratios ROCE^ and ROE 30% 27.6% 5.1x 5.2x 25.4% 5.1x 17% 25% 22.7% 22.3% 5.1x 15% 20% 5.0x 13% 12% 5.0x 15% 4.9x 4.8x 4.9x 10% 4.8x 5% 4.8x 4.7x 0% 4.7x FY 20 FY21 FFO / Gross Debt (18% - 25%) FFO / Net Debt (13% to 15%) FY 20 ROCE ROE FY21 FFO Interest coverage (3x
Slide 45: Environment Social & Governance and CSR FY21
Environment Social & Governance and CSR FY21 Focus Areas • Committed to reduce carbon emission and become carbon neutral by 2025. • Efficient use of water and energy from cleaner sources • Reduction of emission levels • Zero tolerance for fatalities at ports
Slide 46: APSEZ: Myanmar Project
APSEZ : Myanmar Project Current Project Status: • APSEZ, in May 2019 announced its intent to set up a container terminal at Yangon, Myanmar and entered through a lease agreement with the democratically elected government. • Total investment as of date - USD 127 mn (including USD 90 mn for the upfron
Slide 47: APSEZ: ESG update FY21
APSEZ : ESG update FY21 FY21 Performance Initiatives till date Energy Intensity* Emission Intensity* Wind Energy # Solar Energy# 5%↑ 3%↑ 6 MW 14 MW 160 GJ/Revenue 21 tCO2e/Revenue Waste Management* Terrestrial Plantation Mangrove Water Intensity* 2889 Ha - Afforestation 0.6 % ↑ 96% 1.2 Million 2340
Slide 48: APSEZ: ESG performance FY21
APSEZ : ESG performance FY21 Energy Intensity Emission Intensity 2102000 162 284000 282461 21 2100722 160 160 21 2100000 282000 21 158 280000 2098000 156 21 • Energy consumption reduced marginally 278000 2096000 153 2095094 154 21 275723 21 during the period on account of cargo mix 152 276000 209400
Slide 49: APSEZ: ESG performance FY21
APSEZ : ESG performance FY21 Renewable Energy Share 5% 3% • RE share has increased by 200 bps to 5% of total energy consumed due to installation of additional RE capacity at Mundra. FY20 FY21 • Ensured adherence to SOPs and safety protocols laid down to minimize and eliminate LTIs and Safety injurie
Slide 50: APSEZ: CSR activities enabling social transformation
APSEZ : CSR activities enabling social transformation Adani Foundation’s presence across India Social Initiatives through Adani Foundation1 : Core Areas Education Community Health Sustainable Livelihood Community Infrastructure Inclusive Growth, Safety & Other Initiatives at APSEZ • Hiring a diversi
Slide 51: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Ports and Special Economic Zone Limited (“APSEZL”),the future outlook and grow
Adani Ports and Special Economic Zone — Investor Presentation (May 2021) on 6ix